Not upheld: account closure, debt recovery, treatment of vulnerable customer complaint against National Westminster Bank Public Limited Company (NatWest)

Decision detail

Summary

Mr W complained that NatWest unfairly blocked and closed his accounts whilst he had outstanding overdraft and credit card debts totalling over £20,000, failed to provide suitable repayment options, and did not adequately consider his mental health vulnerabilities. NatWest blocked his accounts during a regulatory review in March 2025 and provided 90 days' notice of closure. Between July and December 2025, NatWest made multiple attempts to contact Mr W to arrange repayment, but Mr W consistently refused to engage, disconnecting calls and declining to discuss options despite disclosing suicidal feelings. The ombudsman found NatWest's actions were fair and in line with legal obligations and account terms, and that NatWest had treated Mr W sympathetically despite his lack of engagement. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found NatWest's account review and blocking were legitimate and in line with legal and regulatory obligations to protect customers from financial harm and prevent financial crime. The account terms and conditions permitted suspension and closure. Although Mr W disclosed mental health vulnerabilities, NatWest made multiple sympathetic attempts to arrange repayment over several months, which Mr W consistently refused to engage with by disconnecting calls and declining to discuss options. NatWest was entitled to move the account to debt recovery when Mr W failed to engage, and was under a duty to accurately report the account position to Credit Reference Agencies.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website